Forming A Company In Argentina: A Practical Guide

Published on October 2, 2025 and written by Cyril Jarnias

Argentina, with its diversified economy and evolving market, offers numerous opportunities for foreign entrepreneurs. Despite recent economic challenges, the country remains an attractive destination for international investors seeking to establish themselves in Latin America. This article will guide you through the essential steps of company formation in Argentina, exploring the benefits, available legal structures, taxation, and much more.

Argentina: A Land of Opportunity for Entrepreneurs

Argentina presents several assets that make it an interesting destination for business creation:

A significant and diversified market: With a population of over 45 million inhabitants and a significant middle class, Argentina offers a substantial domestic market for many products and services.

Abundant natural resources: The country has vast raw material resources, particularly in the copper, gas, and oil sectors, offering opportunities in extractive industries and related sectors.

A skilled workforce: Argentina benefits from a highly educated population and competitive labor, particularly in technical and scientific fields.

Strategic positioning: Its geographical location makes Argentina an ideal gateway to South American markets.

Government incentives: The Argentine government has implemented various measures to attract foreign investment, particularly in the automotive, renewable energy, and technology sectors.

Legal Structures Adapted to International Ambitions

Argentina offers several legal forms for foreign companies wishing to establish themselves in its territory. The most common are:

Limited Liability Company (SRL): – Flexible structure suitable for small and medium-sized enterprises – Limited number of partners (between 2 and 50) – Share capital divided into social shares – Partners’ liability limited to their contributions

Corporation (SA): – Suitable for large companies and major projects – No limit on the number of shareholders – Share capital divided into shares – Possibility of stock exchange listing

Branch of a foreign company: – Direct extension of a foreign company – No minimum capital required – Unlimited liability of the parent company

Single Member Limited Liability Company (EURL): – Suitable for individual entrepreneurs – Single partner – Liability limited to invested capital

The choice of structure will depend on your objectives, the size of your project, and your implementation strategy in Argentina.

Corporate Taxation: An Evolving System

The Argentine tax system has undergone significant changes in recent years, aiming to make it more competitive and attractive to foreign investors. Here are the main elements to know:

Corporate tax: The standard rate is 35% on corporate profits.

VAT: The general rate is 21%, with reduced rates for certain sectors.

Withholding tax: Dividends paid to non-residents are subject to a 7% withholding tax.

Tax incentives: Argentina offers tax benefits in certain strategic sectors like automotive, renewable energy, and technology. For example, the automotive sector benefits from accelerated depreciation and fast VAT refunds on new equipment purchases.

Tax treaties: Argentina has signed double taxation treaties with several countries, facilitating international investments.

It’s important to note that the Argentine tax system can be complex and subject to changes. It’s highly recommended to consult a local tax expert to optimize your tax strategy.

Creating Your Company in Argentina: A 7-Step Process

Company formation in Argentina involves several administrative steps. Here’s a detailed guide to help you navigate this process:

1. Choose a company name: Check name availability with the Public Registry of Commerce.

2. Prepare incorporation documents: Draft the company bylaws and other required documents, such as the business plan.

3. Obtain notarial certification: Have the incorporation documents certified by an Argentine public notary.

4. Registration with the Public Registry of Commerce: File the documents with the registry to formalize your company’s creation.

5. Obtain a tax identification number: Register with the tax administration (AFIP) to obtain your CUIT (Unique Tax Identification Code).

6. Register with local authorities: Register your company with the authorities of the province where you’re establishing.

7. Obtain specific licenses: Depending on your business sector, you may need additional licenses or permits.

The average time to complete this process is approximately 4 to 6 weeks, but it may vary depending on the complexity of your structure and the responsiveness of different administrations.

Argentina vs. Offshore Jurisdictions: Comparative Advantages

Although Argentina is not considered a traditional offshore jurisdiction, it presents certain comparative advantages:

Significant domestic market: Unlike many offshore jurisdictions, Argentina offers a vast domestic market, allowing for activity diversification.

Natural resources: The country has abundant resources, offering unique opportunities in certain sectors.

Skilled workforce: Argentina stands out for its workforce quality, particularly in technical and scientific fields.

Sectoral incentives: The government offers specific benefits in certain strategic sectors, which can be more advantageous than the general tax regimes of tax havens.

Brand image: A presence in Argentina can offer better image and credibility compared to some controversial offshore jurisdictions.

However, it should be noted that Argentina has higher tax rates than classic offshore jurisdictions and a more complex regulatory environment.

Social Obligations: Protecting Your Employees and Your Business

As an employer in Argentina, you must comply with certain social obligations:

Social security: Employers must contribute approximately 23-27% of each employee’s gross salary to cover social insurance, health, and pensions.

Unemployment insurance: A 1.5% contribution of gross salary is required for unemployment insurance.

Paid leave: Employees are entitled to annual paid leave, with duration varying based on seniority.

Termination benefits: In case of termination without cause, employees are entitled to benefits based on their seniority and salary.

Unions: Unions play an important role in Argentina. It’s crucial to understand the collective bargaining agreements applicable to your sector.

Occupational health and safety: Employers must comply with occupational health and safety regulations.

It’s important to note that Argentine labor law is generally favorable to employees. Prudent human resources management and a good understanding of legal obligations are essential to avoid disputes.

Opening a Corporate Bank Account: Key Steps

Opening a corporate bank account in Argentina is a crucial step to start your operations. Here are the main steps to follow:

1. Choose a bank: Select a bank suited to your needs. Major international banks present in Argentina can be a good choice for foreign companies.

2. Prepare documents: Gather necessary documents, which typically include: – Company bylaws – Certificate of registration with the Commerce Registry – Tax identification number (CUIT) – Identity documents of directors and authorized signatories – Company address proof

3. Schedule an appointment: Contact the chosen bank to schedule a meeting with a business advisor.

4. Present your file: During the appointment, present all required documents and explain the nature of your activity.

5. KYC verification: The bank will conduct thorough “Know Your Customer” (KYC) checks, which may take several weeks.

6. Initial deposit: Once the account is approved, make the required initial deposit.

7. Account activation: After final validation, your account will be activated and you’ll receive access information.

The process can take 2 to 4 weeks, or even longer for foreign companies. It’s important to note that Argentine banks have strict due diligence procedures, particularly for foreign company accounts.

Promising Sectors: Where to Invest in Argentina?

Argentina offers opportunities in various sectors. Here are some of the most promising for foreign investors:

Agribusiness: Argentina is a world leader in agricultural production and agribusiness, offering opportunities in processing and export.

Renewable energy: The country has set ambitious clean energy goals, creating opportunities in wind, solar, and biomass.

Information technology: Argentina has a talent pool in the tech field, making the country a hub for software development and IT services.

Tourism: With its varied landscapes and rich cultural heritage, tourism remains a high-potential sector.

Mining: The country’s vast mineral resources, particularly lithium, offer significant investment opportunities.

Automotive industry: Argentina is a major player in the Latin American automotive industry, with opportunities in production and subcontracting.

Biotechnology: The country positions itself as a regional leader in biotechnology, offering opportunities in research and development.

Recruiting in Argentina: Attracting and Retaining Top Talent

Recruiting in Argentina can be a major asset for your company, thanks to a highly skilled workforce. Here are some tips for successful recruitment:

Understand the local labor market: Familiarize yourself with average salaries, common social benefits, and employee expectations in your sector.

Use the right recruitment channels: – Online platforms: LinkedIn, Bumeran, ZonaJobs – Specialized recruitment agencies – University partnerships for recent graduates

Offer attractive packages: Beyond salary, consider: – Training and development opportunities – Competitive social benefits (private health insurance, savings plans) – Flexible work options

Value bilingualism: English proficiency is a major asset. Consider offering language courses as a benefit.

Respect labor legislation: Ensure you understand and comply with all employment legal obligations.

Cultural integration: Prepare a solid integration program to help new employees adapt to your company culture.

Long-term talent management: Develop clear career plans to retain your best performers.

Conclusion: Argentina, A Strategic Choice for Your International Expansion

Creating a company in Argentina represents a unique opportunity for international entrepreneurs and investors. Despite economic challenges, the country offers a significant market, abundant resources, and a skilled workforce. Recent reforms and government incentives demonstrate the country’s willingness to attract foreign investment.

However, the success of your establishment will depend on your ability to navigate the local regulatory and cultural environment. It’s crucial to surround yourself with local experts, particularly in business law, taxation, and human resources, to maximize your chances of success.

Argentina can be particularly attractive for companies seeking to establish a strategic presence in Latin America, access high-level talent, or exploit opportunities in key sectors like agribusiness, renewable energy, or technology.

Ultimately, with careful planning and thorough understanding of the local market, Argentina can offer fertile ground for your company’s international growth and expansion.